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GROWTH AND PRODUCTION IN SOUTH AFRICA

2 | Manufacturing Outlook Issue 2

UNICA IRON AND STEEL AFRICA

SETTING A SOLID S TA N DA R D E

As proud pioneers of secondary metals manufacturing, UNICA Iron and Steel is successfully forging a path in South Africa. Managing Director, Mohammed Asif Qasim, tells us more about the industry Writer: Rachel Carr Project Manager: Poppi Burke

stablished in 2007, UNICA Iron and Steel (UNICA) is the first in South Africa (SA) to feature a fully integrated mini-steel plant that produces light to medium structural steel. “We are growing with the pace of demand, and our market share increases daily. We are currently installing a new melting furnace to increase our capacity from 120,000 tonnes per annum (tpa) to 240,000 tpa,” opens Mohammed Asif Qasim, Managing Director of UNICA. Qasim began his career as an entrepreneur and retail shop owner. He developed an interest in the manufacturing industry as an industrialist in 1998 when UNICA Plastics, as it was then known, started in Pretoria. Subsequently, a steel fabrication shop was incepted in 2000, and following that, the company evolved into UNICA Iron and Steel, where Qasim became the Managing Director, co-Founder, and a shareholder. Alongside the melting furnace, Qasim proudly tells us of other projects in the pipeline for UNICA. For example, in an effort to optimise its production capacity, the company added argon oxygen decarburisation (AOD) and oxygen plants to its production processes.

UNICA IRON AND STEEL AFRICA

“We are installing two oxygen plants and one AOD unit, which will allow us to improve our quality further and supply different market sectors,” Qasim tells us. AOD is a chemical process where oxygen is introduced in a vessel to create an exothermic reaction, hence, UNICA installed oxygen plants alongside it. As a result, the plant produces oxygen and nitrogen necessary for decarburising and refining the steel.

“We have invested over R450 million since the COVID-19 pandemic and are continuing to do so. Once all the expansions are completed, we may be at the level of R550 million,” Qasim notes.

PROCESSES AND PLANTS The company uses processed scrap as a raw material to produce steel using an induction furnace, in a process known as secondary steel making. The resultant billets are then processed

in the rolling mills to produce light to medium steel sections such as angle iron, round bars, and window sections. “Focusing on this niche, UNICA has managed to grow its share substantially and has become a benchmark operation for many who have followed its success,” Qasim reveals. “The company is the first 100 percent Bureau of Energy Efficiency (BEE) rated metal waste recycle plant in the small and medium-sized enterprises (SME) space.”

“FOCUSING ON THIS NICHE, UNICA H AS M A N AG E D TO G R OW I TS S H A R E S U B S TA N T I A L LY A N D H A S B E C O M E A B E N C H M A R K O P E R AT I O N F O R M A N Y W H O H AV E F O L L O W E D I T S S U C C E S S ” – M O H A M M E D AS I F Q AS I M , M A N AG I N G D I R E C TO R , UNICA IRON AND STEEL

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Manufacturing Outlook: Could you talk about UNICA’s supply chain operations and what the company procures locally? Mohammed Asif Qasim, Managing Director: “Since we are secondary steel producers, meaning we are metal recyclers, our major input is scrap, which we procure locally. “We have to procure certain consumables from India and China, as the plant is still new to SA, and there aren’t many producers of consumables in the country currently. However, manufacturing may start locally in the near future, but until then, we will rely on imports. Aside from that, 85 percent of our procurement is local.”

Indeed, UNICA has much to celebrate, and its success is partly down to the 900 people it employs from the rural Hammanskraal area in Gauteng Province. The workforce operates in rolling mills to produce over 100 different sections from billets created in an induction furnace and castes in a continuous caster. “When the plant was established, it was able to produce only 12,000 tpa, whereas in the space of 14 years, it has already reached the levels of 15,000 tpa and is expanding further, so we are hoping to reach up to 24,000 tpa by Q3 in 2024. “Next year, the process involving melting scrap to liquid metal and casting it to billets, which are then reheated and rolled from light to medium,” Qasim informs us. Before 2007, only six major steel-making plants existed in the country, which were

dominating the sector, particularly since there were only two major plants in the long products market. “That is where we saw a gap; therefore, we decided to adopt the Asian mini steel plant. Our success followed, with five or six more plants established after us,” continues Qasim.

A strategic hands-on approach gives

MPHO MOOFE TRADING ENTERPRISE the competitive advantage Mpho Moofe Trading Enterprise CC started operations in 2008. The Company was founded by its current Director, Stanley Sello Molele. Its main objective, to develop and provide good quality services in the following key areas: • Project Management • Operations • Construction • Technical Support • Engineering Services • Maintenance • Supply, distribution and other related services, reflecting its clients’ demands

Mpho Moofe Trading Enterprise CC’s products and services are always in demand because its engineering, project management skills and technical background is more diverse than that of its competitors. Mpho Moofe Trading Enterprise CC as a company, is 100% black owned and controlled, and is therefore well structured to supply excellent quality services to satisfy its broad range of clients and customers.

HEAD OFFICE (LIMPOPO): P.O Box 702, Rozano, 0723

GAUTENG OFFICE: 201 Maletswai Section, Ramotse, Hamm

Fax No: 012 345 6789 | Cell No: 079 967 0233

Alternative No:078 686 0063

E CC PLANT EQUIPMENT The company owns some construction plants list below: • 1x water tank 12000 litres • 1x TLB • 2x Bakkie • 1x Diesel bowser • 15x Welding machines • 15x Generators

OUR MISSION Empowerment of our employees and stakeholders is our mission. This will be achieved through continuous development within the communities and organisations we serve.

manskraal, 0400

stanleymolele@yahoo.com

UNICA IRON AND STEEL AFRICA

STRENGTHENING COMMUNITIES “One of the reasons that UNICA is growing and successfully capturing the market is due to our dedicated, motivated, and welltrained workforce. Our experienced executive, senior, middle, and junior management in particular are key reasons for our prosperity,” Qasim sets out. As UNICA is a first-of-its-kind project in SA, most of its staff had no first-hand experience in the demands of secondary steel manufacturing. To address this, the company’s HR department provides on-the-job training.

“ T H E C O M PA N Y I S T H E F I R S T 1 0 0 PERCENT BUREAU OF ENERGY E F F I C I E N C Y R AT E D M E TA L WA S T E R E C YC L E P L A N T I N T H E S M A L L A N D M E D I U M - S I Z E D E N T E R P R I S E S S PAC E ” – M O H A M M E D AS I F Q AS I M , M A N AG I N G D I R E C TO R , UNICA IRON AND STEEL

“We also provide ample training and opportunities for career growth by encouraging our employees to work smart,” he adds. Over the years, the company has consistently improved staff conditions, and now it is the highestpaying employer in the country.

Furthermore, it distributes annual bonuses, long service awards, and production incentives. Employees of the month and year are just some of the initiatives that make UNICA the workplace of choice. As part of UNICA’s mission, vision, and values, it is also deeply committed to making a difference in the community through its corporate social responsibility (CSR) programmes. “We provide economic and equal opportunities to our immediate community by offering direct jobs to citizens in surrounding areas. We ensure that we also extend a helping hand to widows and orphans.” Other programmes include rehabilitating drug users and educating communities on drug abuse as well as the prevention of violence against women.

Allied Mineral Products South Africa (AMSA) would like to extend our deepest congratulations to Unica Iron and Steel for the ongoing partnership we have developed over the years. Best wishes for continued prosperity and growth. Allied Mineral Products is a global company and leading producer of monolithic refractory ceramics. We maintain a strong worldwide presence and have sales in more than 100 countries, supported by 7 precast shape facilities, and 12 manufacturing facilities in 8 countries.

Refractory Solutions for Africa New Precast Shapes Division alliedmineral.com | PH: +27-11-776-2400

UNICA IRON AND STEEL AFRICA

“Sporting activities are also one of our key principles. As such, we sponsor local sports events and kits for teams,” acknowledges Qasim. As corporate citizens, UNICA believes its impact on the local communities and surrounding environment must be positive. To that end, the company encourages a culture of care, supporting multiple projects to uplift the disadvantaged and assist those less fortunate.

UNICA Environmental Objectives The company has set goals to become a sustainable operation and green steel manufacturer by 2025 by: • Migrating to clean energy, including solar and compressed natural gas (CNG). • Recycling at least 2,500 kilogrammes (kg) of general waste (paper, plastic, etc.) and at least 5,000 litres of used oil per annum. • Training 80 percent of employees on different topics under environmental management. • Ensuring that it does not exceed the allowed amount for dust monitoring more than twice a year. • Reducing water usage by five percent compared to the previous year. • Installing a waste processing plant to make waste useable for the construction industry. • Generating power.

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UNICA UPGRADES As the plant is the first of its kind in SA, it is unique in its totality. “We have adapted many different methods in billet-making and rolling processes to innovate our profile. We produce and offer better commercial benefits to our market; for example, we are the first in the country to master and successfully produce light angles of 2 millimetres (mm) gauges. “Similarly, we have produced a special window section, which is light in weight but still does not lose strength due to its innovative design,” Qasim enthuses. The steel industry is one sector that the government has focused on, especially since the COVID-19 pandemic. More aggressive steps have been taken by the current administration,

having who has developed a master plan for the industry, encouraging even greater growth for UNICA. Moreover, the localisation drive and protection of regional products has played an important role in UNICA’s growth after the devastation caused by the COVID-19 pandemic. “During 2020, we completed a new rolling mill, which has allowed us to

expand our billet-making capabilities. Subsequently, the second expansion since the COVID-19 pandemic is underway. This growth is a direct result of our continuous hard work, R&D, and customer-orientated attitude, by providing clients with flexibility and easy access to our ordering and delivery systems,” he details.

All expansions are carried out with calculations and market surveys, demonstrating how UNICA sets realistic targets and achieves them to the maximum extent. “Our current goal is to cross the 24,000-tonne figure by the end of 2024. We are well on course, and I believe we will get there,” Qasim closes.

UNICA IRON AND STEEL Tel: 012 719 9736 info@unica.co.za ironandsteel.unica.co.za Manufacturing Outlook Issue 2 | 11

UNICA IRON AND STEEL 9th Street Erf 87, Babelegi, Pretoria Tel: 012 719 9736 info@unica.co.za ironandsteel.unica.co.za PRODUCED BY MANUFACTURING OUTLOOK MAGAZINE